Hospitality technology – the ongoing evolution of the hotel check-in experience

The hospitality industry is experiencing a rapid transformation as technology continues to evolve. Technological advancements are changing the way hotels operate, interact with guests, provide customer service, and present access to additional amenities. Today’s traveler expects technology at every point in their journey from home to destination. They might use Uber to get a ride to the airport, use their airline’s app to check into their flight and keep their boarding pass at the ready in their Apple wallet.  There already exists an expectation that technology will be in place at several touchpoints along the way. However, in the coming decade, we can expect technology to truly revolutionize the hotel check-in experience.

The pandemic played a role. During its onset, many scaled back operations or even shut down, but when they did that, they laid off a substantial percentage of their workforce. Many of those individuals transitioned to other careers and when the time came to hire them back, a significant number had moved on in their careers and were doing something else. Additionally, the pandemic also accelerated the demand for touchless interaction options from guests. From grocery stores to restaurants, everyone seems to be offering touchless options now, and the hospitality industry cannot afford to be left behind. Finding seasoned staff has been an order of magnitude more challenging, even with the industry standard pay increasing by 23% since before the pandemic.

Technology has gained traction over the past three years, filling in the gaps where hiring has become difficult.  When considering the downside of having fewer employees on the floor of a hotel or property, the onboarding of specific technology has also brought about positive change, modernization and in some cases, a more seamless experience for the hotel check-in and stay experience. In doing so, hotels are also catering to the changing demands of guests for more on-site technology.

Hotel check-in and beyond. Guests have a choice.

Today, travelers and hotel guests make a choice about whether they want to queue up at the reception desk to check in. There are those that prefer to speak with a person, but increasingly hotel technology is used in the next phase of the traveler’s journey. It’s interesting to note that a major source of negative guest reviews for hotels is the check in experience, especially when it leads to long lines of people waiting for their turn.  Statistics tell us that front desks can only check in one person at a time and the typical check-in experience at the desk runs 5 - 9 minutes. Advanced software and applications are now making it possible for hotels to process guests faster, handling an infinite number of check ins at a time. Guests use their smartphone or an in-lobby kiosk to complete the check-in process, bypassing the front desk altogether. This process saves guests a great deal of time and hassle, especially when they are in a hurry.

The rise of mobile check-in apps and kiosks is changing the way guests interact with hotel staff and what they require of them, as well. It’s now a choice that many guests make – if they wish to wait in a line to speak with the person at the front desk. Or they want to have a touchless experience and do everything on their phone.

Mobile check-in provides a choice. There is no typical hotel guest.  Some want to stand in line and speak with a person.  Some want to check in via mobile or kiosk but go to the front desk when they have a request for a room upgrade. However, even room upgrades are now accessible via mobile or in-lobby kiosk, enabling guests to conduct their entire stay without interacting with staff. With technology, guests can bypass the front desk and go directly to their rooms if they wish and, ultimately, tailor the check-in experience and their entire stay to their personal desires. Mobile check-in provides clear convenience as guests can check in from anywhere, at any time and in a positive sense, reduces the need for staff at the front desk, freeing them up to attend to other duties.

Additionally, some hotels have begun using artificial intelligence (AI) to streamline the check-in process. Chatbots can answer guests' questions and provide information about hotel services. AI has been particularly useful for hotels that receive a high volume of guest inquiries, as it allows them to respond to requests and questions more quickly and efficiently than ever before.

Impact on Hotel Employees

While technology has made the check-in process more convenient for guests, it has also had an impact on the hotel employee hiring and retention experience. The combination of the pandemic ripple effect where some staff did not return to their roles, and the rise of mobile check-in apps and kiosks, means that the demand for front desk staff has waned. Some common scenarios include those that have previously held the position have moved onto higher-level more long-term roles in the organization while some hotels have implemented self-check-in kiosks, allowing guests to check in without any assistance from hotel staff. The popularity of this type of offering is gaining momentum, empowering hotel guests to check in quickly any time of the day or night.

The impact of technology on human capital raises concerns about the potential loss of hospitality jobs. However, it is important to restate hotels across the board are still having trouble finding staff. Technology has filled the gap and allowed hotels to continue operating, using check-in technology as a differentiator by removing the mundane tasks of checking guests in and instead turning front-desk staff into guest-relationship managers. Staff now has more time to interact with guests and make their stay more personable.

Total Addressable Market

There are many lodging rooms available in the US – anywhere from 5-9 million rooms of various cost and size available. Hotels spend, on average, about $9 per check in on front desk labor (about $6.2B per year), a significant cost when considering that the average room rate is $100 industrywide. Total US hotel revenue is $342B per year, and ancillary revenue sales (purchase room upgrades, and room service options) equal about $75B of that. Considering sales increase 17% - 20% when these upsells are offered via mobile phone app compared to speaking with hotel staff, there is significant upside opportunity there. New technology is supporting additional revenue by removing check in labor costs as well as providing a quick and convenient way to support additional sales. Finally, we have to consider fraud, which is estimated as 1.1% of revenue (or about $3.8B per year) and can be virtually eliminated with modern check-in technology.

What's next?

The big debate with hospitality tech over the last decade has been “build it vs. buy it.” And hospitality brands are the deciders in which road to take. Many independent hotels buy hospitality technology, as they typically lack the resources to develop purpose-built software. And lately, even for the larger hotel brands, there has been a trend to look for third party solutions in the marketplace to fit their needs across their properties. It is likely this trend will continue in the property management system space and guest experience software markets. There is technological and market adoption on the horizon.

Another potential development is the use of biometric technology in the check-in process. Biometric technology, such as fingerprint and iris scanning, could eliminate the need for physical keys and provide guests with a more secure and personalized experience. Additionally, the use of biometric technology could improve the efficiency of hotel operations by reducing the time it takes to check-in guests even further.

Overall, technology is transforming the guest experience in the hospitality industry in several ways. The hotel check-in experience is just one area where changes and evolution are already in force.